Every time a major manufacturer considers making a move within the US, there are 15,000 Economic Development Directors sealing large envelopes containing a packet filled with lovely and inviting brochures hoping to win jobs through private investment.

Boeing’s expansion announcement for Charleston is the national coup of the year for the Lowcountry.

We don’t know if there were 15,000 involved in the recent site review by Boeing, but we have to believe the competition was fierce.   The winner was the Charleston area, North Charleston to be exact.  The loser was Seattle, Boeing’s hometown for decades.

Boeing plans to break ground on a 584,000 square foot expansion near its existing North Charleston factory within the next few weeks.   They’ll begin rolling 787 Dreamliners out of Charleston in 2011.  The 787 is Boeing’s first new jet in more than a decade.

Boeing’s $450 million investment will produce at least 3,800 jobs.

The announcement is massively positive news for a state currently suffering one of the country’s highest unemployment rates and still reeling from recent political embarrassments.

Gooden + Faircloth welcomes Boeing and predicts everyone associated with the company moving into the area will love Charleston as much as we do.

I hear these statements every single day;  “I can’t find a job”, “I can’t pay my bills”, “Can you help my child find a job”, “The phones aren’t ringing”.

There are plenty of people fortunate to have salaried positions, reasonably well isolated from the financial struggling so common for so many of our neighbors and their businesses.   I personally see a great deal of struggling among my middle-class neighbors and friends.

A couple of thoughts for this period:

1)  Think positively.  There is going to be an end to this recession.  There is.

2)  Be kinder, gentler and more supportive to others.  Most are having problems.  Share a smile.

3)   Shop locally.  Avoid online purchases during this period.  Money spent locally circulates locally.

4)   Use this period to push yourself out of your same traditional line of personal and professional thinking.  Get out of your box.  Decide this downturn is going to have proven beneficial to you and your career.

Niels Bohr, the Nobel Prize-winning Danish physicist:  “Every great and deep difficulty bears in itself its own solution.  It forces us to change our thinking in order to find it.”

Reprinted from Charlotte Observer August 22, 2009

Charlotte-area home prices continued a slow creep upward in June, according to a closely watched index released this morning.

Area sales prices remain in negative territory compared with a year ago, but rose .7 percent from May to June, according to the S&P/Case-Shiller Home Price Index. While that was down slightly from the previous month’s uptick, it was the third monthly gain in four months and further evidence prices are stabilizing.

The increase comes as the broader index of 20 metropolitan areas also has been improving.

“For the second month in a row, we’re seeing some positive signs,” said David Blitzer, chairman of S&P’s index committee, adding “there are hints of an upward turn from a bottom.”

Home prices and sales remain well off their highs, locally and nationwide, but today’s Case-Shiller reading adds to a growing list of small improvements.

The index is especially meaningful because it tracks repeat sales of existing houses, the most precise broad measure of how home values are adding up. Charlotte’s run of rising values outlasted the 19 other markets for a long time. But in April 2008, the region turned to losses. This March, Charlotte saw a tiny gain, followed by an April decline and now two consecutive months of gains.

Charlotte’s prices compared with a year ago also improved, moving out of double digit losses, to a 9.6 percent decline. That remained the fifth smallest decline of the group.

Compared with a year ago, all 20 of the index’s markets remain down. But 18 areas had positively monthly gains in June, up from 13 in May. Phoenix, long the most depressed market, saw a monthly gain. Las Vegas registered the biggest monthly loss, which pushed it into last place, with prices down 32.4 percent from a year ago.

“We’re delighted to see these positive figures,” said Gooden + Faircloth partner Rebecca Gooden.   “They’re actually in perfect synch with what our company has experienced since January.”

According to Reuters News Service, the downturn in the U.S. housing market touched off a global credit crisis that sent economies worldwide tumbling into recession. Now, signs are emerging that the global economy is beginning to heal.

Lawrence Yun, senior economist at NAR, credits improved home affordability and the government’s $8,000 tax credit for first-time homebuyers for the surge in U.S. buying activity.

Says Gooden of Gooden + Faircloth, “all of our buyers in the first half of ‘09 have been first-timers.   In fact, it is the market segment we’ve focused heavily on. The $8,000 Tax Credit has been a major draw of activity into the market.   We’d still like to see the credit expanded to all buyers, not just first-timers.  Housing is historically affordable right now.”

The NAR said its Housing Affordability Index, which blends factors like home prices and mortgage rates, was “in record territory” with 30-year mortgage rates hovering around 5 percent and an abundance of homes on the market

.

Added Edward Faircloth, ” a recovery in the housing sector has been responsible for bringing the country out of 5 of the past 7 recessions.  It only makes sense that healing the housing industry should be a primary focus for the federal government stimulus programs.”

“Almost everyone,” says Faircloth, “agrees that a housing recovery is critical for a broader economic uptick, mainly because it was housing which kick started the recession.”

The Democratic Leadership Council was formed during the Bill Clinton presidential years.   It is known for its moderate positions, positions which often mirror classic moderate Republican positions.

The DLC has recently released a report which it believes contains the key to reinvigorating the American economy.  Gooden + Faircloth agrees.

According to the DLC, reticence among many potential home buyers to move into the market is preventing recovery. Few doubt that the housing bubble’s implosion drove the nation into its current recession. The authors suggest that an upswing in the housing market could also play a crucial role in turning the broader economy around.

Newly-installed DLC CEO Bruce Reed commented: “The housing market helped start this economic crisis. Getting homes moving again is crucial to speed the nations recovery.”

The Report, titled Moving Houses: How Sparking a Housing Recovery Is The Key To America’s Economic Recovery, makes several recommendations, including:

• Expand the $8,000 Homebuyer Tax Credit to individual and family homeowners looking to move or buy a new home, regardless of whether they previously owned another. This expansion is estimated to cost $11.4 billion;
• Limit the credit by ensuring it expires at the end of the year, forcing those intent on taking advantage of the credit to get into the market in the short term; and
• Ensure that homeowners have access to the credit at closing by directing the Secretary of HUD and/or the Secretary of the Treasury to use existing authority (possibly through the Home Program or the Troubled Asset Relief Program) to set up a fund that would advance some of the down payment and closing costs.

Among the report’s key findings:

• The turning point in five of the last seven recessions has been marked by the moment housing sales began to swing up again.
• The housing sector was responsible for over 75 percent of all job growth from 2004 through 2007.
• In the past year alone, existing and new home sales have fallen by 13.1 percent and 37.6 percent, respectively.
• Nationally, sales of existing homes fell 10.3 percent in February from a year ago, and the U.S. median sales price slid almost 16 percent to $165,400.
• The housing sector makes up approximately 10 percent of the nation’s GDP.

To access the full report, click here.

There is still plenty of rough economic news pouring out at us, but there is an unmistakable sense of calm and hope.   Barack Obama must be given the credit.  Yes, I voted for Obama and yes I understand there are plenty of folks who disagree with several items on his agenda.  But I believe thinking members of our community, as opposed to those whose knees jerk with ease, will agree Obama seems to be moving us in the right direction.

This is very very new territory for our government.  This is a very very problematic period in our history.  There is no supplied set-up documentation for him to follow.   He has clearly surrounded himself with brillant minds, clearly weighed his options and clearly moved us in what appears to be an intelligent direction with calm and confidence.

And it is that calm and confidence which I believe has resulted in increasing numbers of shoppers coming into my lunch neighbor’s store.

Bloomberg News says consumer confidence in the U.S. jumped by the most since 2005 this month as stocks rallied, mortgage rates dropped and Americans anticipated more jobs would become available.

“There certainly is starting to be a shift here, where the data is either less bad or even starting to improve,” Michael Darda, chief economist at MKM Partners LP in New York, said in an interview with Bloomberg Television. While “we certainly haven’t turned the corner yet” the economy “could bottom out between June and October of this year and then start” growing.

The gain in confidence raises the odds that recent gains in consumer spending, which accounts for 70 percent of the economy, will be sustained.

Public-opinion polls also show for the first time in four years most Americans say they believe the U.S. is going in the right direction.

Gooden + Faircloth’s real estate business has in the past month also seen a welcome uptick and movement toward the light.  Like our president, let us remain calm and confident that better days are ahead for Mt Pleasant and America.

We attribute Gooden + Faircloth’s success to several factors but location, location, location surely has to rate highly ( as does hard and smart work ).

Mt Pleasant is a wonderful city ( oops, there I go again referring to it as a city instead of a town ).    I grew up in Clinton, NC ( a  town of 13,000 ) but before moving to Mt Pleasant had lived the past 25 years in the Ft Lauderdale area.     Lauderdale is fine, but ‘ nothing could be fina than to be in Carolina’.   What a wonderful breath of fresh air Mt Pleasant ( and Charleston ) have been for me.  Want to see a ‘real’ traffic jam?   Check out I-95 during the season.  Want to see real crime, crowds, tempers and temperatures?  South Florida is the place.   Don’t get me wrong,  South Florida was exciting, beautiful, exilerating, but 25 years was enough.   Time to return home.

And, therein, lies the key to the success of Mt Pleasant.   It is a home;  a great home for our family or a great home for our business.

We now learn Businessweek has named Mt Pleasant the best city for starting up a business in South Carolina.    Cities like Charleston, Greenville, Spartanburg, Columbia and Florence are pretty good competition.

Mayor Hallman attributed the designation to competitive costs of business, a pro-business attitude and attractive financial incentives.   I suspect all the cities above could say the same.  The mayor, the council, the citizens of Mt Pleasant make our home attractive, inviting, appealing and comfortable.  Businessweek agreed.  We appreciate the recognition and appreciate the business support shown by Mt Pleasant.

“Mt Pleasant’s government and adminstration, supported by its citizens, deserves great credit for this wonderful designation from BusinessWeek, ” said company partner Rebecca Gooden.

Gooden + Faircloth Real Estate Services is based in Mt Pleasant and operates primarily within the town’s limits.

A Lender, Lawyer and Leader answer a frequently asked question.

Are we seeing glimpses of a recovering local real estate market?  Is it a seasonal difference?

Gooden + Faircloth asked three Mt Pleasant real estate industry authorities the same question our team is asked virtually everyday, “How’s the local real estate market?”

Bobby Green – Bank of America Mortgage Loan Officer
“Rates are holding under 5.0% with no points and no origination fees.
Home showings have picked up and so have Pre-Approvals.  This Spring is going to be the “Turn” in the Real Estate Market.  Plus, the Homeowner Affordability and Stability Plan is starting to be implemented.  This will help everyone refinance into lower rates.”

Rick Brownyard – Real Estate Attorney
“Money magazine has pegged the Charleston Market at within .one tenth of 1% from the market bottom and to be amongst the first 25 major markets to begin sales and price increases beginning the third quarter of this year. That seems to be borne out by the increased number of purchase closings that we are handling and is probably is being boosted by the great interest rates available right now. This really seems like the time to buy for those who have been wavering.”

Rob Woodul – Keller Williams Mt Pleasant Market Center Leader
” We are currently seeing activity that we haven’t seen since June of last year.  Showings are way up and contracts, at least for our office, are on the rise. So what is driving this?  Well in my opinion the $8000 dollar tax credit for first time home buyers is moving more people off the fence.

Three important changes of interest have just occurred.

1.   Do you seek a mortgage for multiple properties?  Previously the limit was 4.  It is now 10 says Jeremy Mills of Good Faith Mortgage in Charleston. “The borrower must have at least a 720 credit score and must prove income.   The properties must be single family residences, double-wide manufactured housing or a warrantable condo.”   According to Mills, the maximum loan to value on the properties is 75% for purchase and 70% for a refinance.

For investment properties, the borrower does have to have 6 months reserves on the subject property, and 6 months reserves on each other financed second home or investment property.

2.   100% financing through USDA.  Need 100% financing?  The USDA may have the answer.   Says Mills of Good Faith, “this program does have county income limit restrictions and the property must fall into a USDA approved zone.”   Income verification is required and the minimum credit score is 620.  According to Mills, the USDA will consider making exceptions on a case-by-case basis for those whose score is less than 620.

3.    Self Employed?   The self – employed must prove their income, but according to Mills, banks are only requiring the previous year’s income instead of the past 2  years.    Mills tells Gooden + Faircloth, “banks will often ask for a current profit and loss statement by the self-employed person’s accountant to verify income.”